FinTax Corporate Professionals LLP

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Employees State Insurance Registration

Mandatory for a company having 10/20 or more employees, Salary upto Rs 21,000 PM

  • Employer's Statutory Liablity to deposit monthly PF 
  • Registration time taken 4-7 days 
  • Our pricing starts @ Rs 5,000/-

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Take Consultation

First Call us for Preliminary consultation OR Book Appointment for in depth Consultation.
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Post requirement

Our team shall review and Call you back in 3-4 hours.
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Get a Proposal

Next get a detail proposal with expenses of the task on email.
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Pay Fee & Take Service

Send Documents, Pay fee as per agreed terms and get the work done on time.

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Employees State Insurance Registration

Employees State Insurance Scheme at a glance

ESI Scheme is govern by the Employees' State Insurance Corporation, implemented as per the ESI Act 1948.

The ESI Scheme applies to factories and other establishment's viz. Road Transport, Hotels, Restaurants, Cinemas, Newspaper, Shops, and Educational/Medical Institutions wherein, 

  • 10 or more workers ( 20 or more in some states) working and
  • Drawing Salary/wages upto Rs.21,000/- per month.

ESI Corporation has extended the benefits of the ESI Scheme to the workers deployed on the construction sites located in the implemented areas under ESI Scheme w.e.f. 1st August, 2015.

 

Under the ESI Scheme,

  • Employer contributes 4.75% of the wages.
  • Employees' Contribution is 1.75% of the wages.
  • Employees, earning less than Rs. 137/- a day as daily wages, are exempted from payment of their share of contribution.Employers will however contribute their own share in respect of these employees.

 

Send your Requirement here

Legal requirement of Employer towards Employees State Insurance Scheme

Comply Rule & Take Registration
It is Statutory obligation of the employers on which ESI Scheme apply under the ESI Act, 1948 , shall comply the provisions of the Act and Register their Factory/ Establishment under the ESI Act within 15 days from the date of its applicability.
Enrol Eligible Employee
Enrolment of all eligible employees on its rolls (regular or contractual) – wages upto Rs 21,000 at the time of joining the establishment. And take a print out of the Temporary Identity Certificate (TIC). On linking of Aadhar with IP insurance number, TIC will automatically be converted into a Permanent Identity Card (PIC). With PIC the IP and his family members can avail benefits under the ESI Scheme, without any hitch.
ESI Contribution
Employer contributes 4.75% of salary ( Basic +DA+ Retaining allowance) and Employees Contribution 1.75% which is deducted from employee's salary deposit with ESI Account within the due date.
File Monthly Return
Every month Employer file ESI return online with details of Employee, salary and ESI contribution amount within the due date.
Remittance of Monthly ESI
The total amount of contribution (Employer and Employee) is to be deposited in any branch of SBI by ONLINE generation of a challan through ESIC portal using his credentials. ESIC has facilitated payment of ESI Contribution online by employer via the payment gateway of 58 banks in addition to SBI.
File Half Yearly Return
File half yearly return and report to ESIC authorities if there is any change in business activity, address, ownership and the management, maintenance of registers and records etc.
Maintenance of records
For ESI compliance the employer has to maintain following records:
1. Wage record and books of Account maintained under other laws.
2. Accident Register in new Form-11 and
3. An inspection book.
4. The immediate employer is also required to maintain the Employees’ Register for the employees deployed to the principal employer.
There is no time limit in PF ACT to keep the records. It is suggestible preserve records for atleast 7-10 years.

Documents requirement for Employee State Insurance Registration

  1. Permanent Account Number
  2. Digital Signature of Employer
  3. Bank Details ( Cancelled Cheque)
  4. List of Eligible Employees with Salary breakup
  5. Address Proof ( COI/Telephone/Electricity/Water bill)
  6. Partnership Deed ( for Partnership Firm)
  7. Memorandum and Articles of Association of the Company
  8. Factory License/Shop & Establishment Registration Certificate

List of Compliances after Registration of Employee State Insurance

  1. Enrolment of all eligible employees.
  2. Deduct ESI from Employee's Salary 1.75% and Make own contribution 4.75%.
  3. On time Deposit of ESI Amount. ESIC
  4. File Online monthly Return
  5. Maintaining Records and Register as per law
... Read More ...

Our Pricing

1
New Registration - ESI

Employees upto 50

Rs. 5000

2
New Registration - ESI

Employees upto 100

Rs. 8000

3
New Registration - ESI

Employees upto 250

Rs. 15000

4
New Registration - ESI

Employee More than 250

Customise Fee

5
New Registration - EPF & ESI

Employees upto 50

Rs. 10000

6
New Registration - EPF & ESI

Employees upto 100

Rs. 15000

7
New Registration - EPF & ESI

Employees upto 250

Rs. 25000

8
New Registration - EPF & ESI

Employee More than 250

Customise Fee

Our Service package inclusion for Registration of Employees State Insurance

Consultation
Our Consultant first give on call consultation about the Process of Registration with the Authority, Guidelines and Documents requirement.
Application Preparation
Our Expert prepare your application and co-ordinate with you for all the relevant employee data and documents requirement.
Application Filing
As soon as your documents reach to us and your application is processed properly, we start processing your ESI Registration and submit to ESIC online.
Update Status
We intimate you updated status regularly.
Registration No.
Our expert will provide the 17 Digit ESI registration number within 4-7 days

Registration process of Employees State Insurance

Employer Signup
For new employer registration, first step is Signup on ESIC website with Company Name, Principal Employer, State, Region, Email ID and Mobile No.
Employees State Insurance Registration
Get User ID and Password to Login
An email is sent to the user after successful sign-up along with login credential at registered Email ID
Employees State Insurance Registration
Select Unit type
Once you Login and process for New Registration, Select your Establishment Type:- 1) Factory or 2) Shop Establishment and Proceed for next.
Employees State Insurance Registration
Prepare Application Form
Fill up all the Information one by one in Form-01. Put Employee Details Gender wise Total ( Employed Directly or Through Contractor)
Employees State Insurance Registration
Upload Documents and Attach DSC
Once Application fill up is complete and all Particulars correctly disclosed in the form, next work is upload all relevent documents and attach DSC of the employer.
Employees State Insurance Registration
Pay Advance &/or Submit
Finally submit the form and View/Print the Registration Letter (C-11) and this is also send to your Email ID.
The C-11 is a computer generated letter and does not require any signature and can be used as a valid proof of registration of the unit under ESI Act.
Advance Contribution ?
If Employer Nature of works comes under below category then, Employer need to file Advance contribution of 6 months estimated ESI while registration.
# Security Agencies
# Contractor
# Men Power Suppliers
After submitting registration form system will show success screen.

What are the benefits of ESI registration for Employee?

A) Medical Benefits to an employee and his family members   

B) Cash Benefits:-

     1. Sickness Benefit (@70% of wages for 91 days

     2. Disablement Benefit (for self)

         > Temporary @ 90% of last wages as long as last

         > Permanent disablement @ pro rata loss of earning capacity lifelong

     3. Maternity Benefit (@ 100% of wages for 12 weeks)

     4. RGSKY for unemployment (50% of last wages for 1 year)

     5. Death benefit (death while on work) -  90% of salary is given to his dependents every month after the death of the employee.

     6. Funeral Expenses (Rs 10000/-)

     7. Other Benefits

       > Vocational rehabilitation

       > Physical Rehabilitation

Employees State Insurance Applicable to below employers

As per the government notification dated Sec 1(5) of the ESI Act the following entities are covered:

  1. Shops
  2. Restaurants or Hotels only engaged in sales.
  3. Cinemas
  4. Road Motor Transport Establishments;
  5. Newspaper establishments.(which is not covered under the factory act)
  6. Private Educational Institutions

having 10 or more ( 20 or more in some states) workers working and drawing salary/wages upto Rs 21,000.

State Wise Employee Limit applicability:-

Employee State Insurance minimum number of employees statewise

 

When and How to Register all Eligible Employees with ESIC?

EMPLOYEE INSURANCE NUMBER

Once the application is Submited and an employer receives Registration Intimation Letter bearing Registration Code of 17 Digit, the next responsibility of employer is,

  • to collect all eligible employee and his family members details, Photograph, Aadhar Card( if any) or any other Address and ID proof of Employee and preferably Any Valid documents supporting the proof of relation between employee and his family members. 
  • to register every individual employee.  The insurance number generated On-line  is to be used throughout his life time irrespective of change of employment including change of place/establishment.
  • Submit Employee details online with Employer Login.
  • to update employee details in the ESIC Portal for any changes in his residence/ dispensary/ employment.

TEMPORARY INDENTITY CARC (TIC)

After On-line registration of an employee under the scheme, the employer can take a print out of the Temporary Identity Certificate (TIC). TIC will be valid for a period of one month only

PERMANENT INDENTITY CARD (PIC)

On linking of Aadhar with IP insurance number, TIC will automatically be converted into a Permanent Identity Card (PIC). With PIC the IP and his family members can avail benefits under the ESI Scheme, without any hitch. If Aadhar number of IP/family is 10 not available, then employer will ensure to affix the IP photo along with the family members on TIC duly authenticated with his stamp & signature. As soon as possible but not later than a month, the insured person along with his entire family should link their Aadhar number using the web site www.esic.in for availing medical benefit at dispensary/ hospital and availing cash benefits at the ESI branch Office.   

 

Employees State Insurance Registration
FAQs
  • Why do you need FinTax Corporate Professional's service ?
    • It is important your Application is filed correctly and properly as per legal requirement. Our Experts are well experienced in this line to get your work done smoothly.
  • What do you mean by salary for this ESI purpose?
    • Salary or Wages is Basic Pay plus Dearness Allowance (DA) plus Retaining Allowance.
  • Do I need to physically present for the process?
    • No, You don't need to be physically present for the process. process is 100% online.
  • What if ESI registration is not done?
    • As per the Rule within 15 days of ESI Scheme applicability on employer, it is the legal obligation of the employer to get register with ESIC and Get Insurance number of all employees drawing monthly salary upto RS 21,000.
      PENALTY APPLY FOR DELAY REGISTRATION.
  • Is Permanent Account Number compulsory for Registration of ESI?
    • Yes.
  • Is Digital Signature of Employer is Mandatory in ESI Registration and Return Filing?
    • Yes. Class 2 DSC required of employer for ESI registration and to file all return.
  • How PF is deducted from salary?
    • For ESI deduction, the maximum limit of salary of the employee is Rs 21,000 per month. This means that even if the employee's salary is above Rs 21,000, the employer is liable to contribute only on Rs 21,000 that is Rs 998.
  • Can an eligible employee, choose not to contribute to EPF?
    • No. As per the provisions of the ESI Act 1948, Act, no eligible employee has the option of staying away from the contribution. It is mandatory to contribute to the fund, if the establishment and employee both are coming under the provisions of the Act.
  • What is the time limit for Payment ESI Contribution?
    • Within 21 days of the last day of the month in which contribution is due for the wage period.
  • What is the mode of payment of ESI Contribution?
    • The total amount of contribution (Employer and Employee) is to be deposited in any branch of SBI by ONLINE generation of a challan through ESIC portal using his credentials. ESIC has facilitated payment of ESI Contribution online by employer via the payment gateway of 58 banks in addition to SBI.
  • What is the penalty for delay payment of ESI Contribution?
    • 12 % per annum simple interest is payable for delay payment of EPF plus :-
      1) Default less than 2 months -5 %
      2) Default is above 2 months but less than 4 months -10%
      3) Default is above 4 months but less than 6 months – 15 %
      4) Default is above 6 months – 25 %
  • What are consequences of non / late payment of employees' contribution deducted but not paid?
    • Any sum deducted by the Principal employer from wages under the ESI Act shall be deemed to have been entrusted to him by the employee for the purpose of paying the contribution in respect of which it was deducted as per Section 40 (4) of the ESI Act,1948. Non-payment or delayed payment of the Employee's contribution deducted from the wages of the employee amounts to ' Breach of trust' and is punishable under IPC 406, 409 and also an offence u/s 85 of ESI Act.
  • Who all employees covered under the ESI Scheme?
    • Any person employed for wages in or in connection with the work of a covered Factory or Establishment, and:
      A) Directly employed by the Principal employer, on any work of the Factory or establishment within the premises or elsewhere, or in any part, department or branch dealing with administration, purchase of raw materials, sale or distribution of the products of the factory or establishment.
      B) Employees of the immediate employer:
      > Employed in the premises on any work of the factory or establishment;
      > Employed outside the premises on any work of the factory or establishment under the supervision of the Principal employer or his agent;
      > Employees lent or let on hire to the principal employer on any work of the factory, or employees/professional on contract of service.
      > Paid Directors of a company.

      Exclusions:
      (1) An Apprentice engaged under the Apprentice Act 1961 and
      (2) An employee drawing wages above the ceiling for coverage prescribed by the Central Government. Employees/ Professionals rendering services for contract for service.
      (3) Employee in paying his contribution is whose salary is less than Rs. 100/- per day.
  • How many returns are filed every year after the registration is finalised?
    • After the registration ESI Returns have to be filed twice a year. The following documents are required for the filing of the returns:
      1. Register of Attendance of the Employees
      2. Form 6 – Register
      3. Register of wages
      4. Register of any accidents which have happened on the premises of the business
      5. Monthly returns and challans
  • Whether Over time payment to be included for calculating wage ceiling limit for coverage of an employee?
    • No. Overtime is not includable for calculating the wage ceiling limit for coverage of an employee. But, it is included for payment of contribution to cover the risk during the period of overtime work, and to enable receiving cash benefits at an enhanced rate also.
  • How wages are computed for payment of contribution?
    • The following wage components are taken into account for computation of wages for payment of contribution.
      a) Basic Pay,/Wages/Salary;
      b) D.A/ HRA/ CCA/ Overtime/ officiating allowance/ Night shift allowance/ efficiency allowance/ Heat, Gas, Dust allowance/ Education allowance/ Food & Tea allowance/ conveyance allowance; Overtime wages (but not to be taken into account for determining the coverage).
      c) Wages/ salary/ pay for weekly off and public holidays;
      d) Commission paid to sales staff;
      e) Subsistence allowance paid to an employee during the period of suspension;
      f) Attendance Bonus or incentive or ex-gratia in lieu of Attendance Bonus or production incentive;
      g) Regular Honorarium or salary or remuneration paid to a Director;
      h) Collection Bhatta paid to running staff. Production incentive, Bonus other than statutory bonus, night shift. Heat, Gas & Dust Allowance, Meal/Food Allowance.
      i) Actual payments made towards leave salary, lay off compensation, or wages for strike period.
      j) Any other remuneration paid or payable in cash to an employee if the terms of contract of employment, expressed or implied were fulfilled.
      The above are only indicative.
  • What is a Code number?
    • It is a 17 digit unique identification number allotted to each of the factory/establishment registered under the provisions of the Act. Such a number is generated through ESIC portal on submission of the pertinent information by the employer. It can also be generated on receipt of Survey Report from the Social Security Officer.
  • What is a Sub-code number?
    • This is also a unique identification number allotted to a sub-unit, branch office, sales office or Registered Office of a covered factory or establishment located in the same State or different State. The employer can register any Branch or Sales Office through ESIC Portal using his credentials and his unique primary registration code number.
  • Is there any provision for 'exemption of a factory or establishment' from ESI coverage?
    • Yes, of course the exemption is permissible from operation of provisions of the Act subject to the condition that the employees in a covered factory or establishment are other-wise in receipt of benefits substantially similar or superior to those provided under the ESI Act.
      The appropriate Government may grant exemption to such factory or establishment for a period of one year at a time prospectively in consultation with ESI Corporation. An exempted application unit has to apply for renewal three months before the date of expiry of the prior exemption.
  • What is the effect of increase in wages from a retrospective date?
    • In case the wages of an employee is increased from a retrospective date resulting in crossing the wage limit prescribed, its effect on coverage of that employee is only after expiry of the Contribution
      period during the currency of which such increase is announced or declared. The contribution on enhanced wages is also payable from the month in which such increase is announced. There is no
      need to pay the contribution on the arrears for the period prior to the month of declaration/ announcement/ agreement.
  • Who is a Principal Employer?
    • (A) In the case of a factory, any of the following:-
      (i) Owner;
      (ii) Occupier;
      (iii) Managing Agent of the owner or occupier;
      (iv) Legal representative of a deceased owner or occupier;
      (v) Manager of the factory under the Factories Act, 1948.

      (B) In the case of Establishments belonging to or under the control of Government of India:
      (i) The Specified Authority
      (ii) The Head of the Department (In the absence of specified Authority).

      (C) In the case of other establishments: Person responsible for the supervision and control of the establishment.

      (D) In case of shop – a) i) Owner II) Proprietor III) Partners IV) Directors
      (b) Management of the Owner
  • What is the wage ceiling limit prescribed for coverage of an employee?
    • The wage ceiling prescribed for coverage of an employee is Rs. 21,000 per month w.e.f 01.01. 2017.
      However, there is no wage ceiling for coverage of an employee with 'disability' 01.04.2016.
  • What is 'Average Daily Wages'?
    • Average daily wages means the aggregate amount of wages payable to IP/IW during that period divided by the number of days for which such wages were payable.
  • Who is an 'Exempted Employee'?
    • An employee who is not required to pay employees' contribution is called an exempted employee. The exemption limit with effect from 14.6.2016 is Rs. 137/- per day. However, employer's contribution is payable on these wages.
  • What are the contribution periods and benefit periods?
    • The financial year from April to March has been divided into two halves six monthly contribution periods i.e. first half from 1st April to 30th September and second half from 1st October to 31st March of next year. The relevant benefit period corresponding to each contribution period commences three months after the end of the that contribution period i.e. Jan to June and July to December.

      (The calendar year from January to December has been divided in to two six monthly benefits
      periods).
  • What is the Concept of Employees State Insurance behind its applicability started in India?
    • Employees’ State Insurance Scheme of India is a multi-dimensional Social Security Scheme tailored to provide Socio-economic protection to the 'employees' in the organised sector against the events of sickness, maternity, disablement and death due to employment injury and to provide medical care to the insured employees and their families.
      The scheme provides full medical care to the employee registered under the ESI Act, 1948 during the period of his incapacity, restoration of his health and working capacity. It provides financial assistance to compensate the loss of his/ her wages during the period of his abstention from work due to sickness, maternity and employment injury. The scheme provides medical care to his/her family members also.
  • What is the coverage of ESI Scheme in India and Its journey?
    • In the beginning, the ESI Scheme was implemented at just two industrial centers in the country in 1952, namely Kanpur and Delhi. There was no looking back since then in terms of its geographic reach and demographic coverage. Keeping pace with the process of industrialisation, the Scheme today, stands implemented at over 843 centres in 33 States and Union Territories. The Act now applies to over 7.83 lakhs factories and establishments across the country, benefiting about 2.13 crores insured persons/ family units. As of now, the total beneficiary stands at over 8.28 crores.
... Read More FAQs ...
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